Memecoin market shows strong recovery momentum after hitting lows in December 2025, with accumulated gains reaching $8 billion in market cap expansion. The sector's rally has been particularly striking—PEPE tokens surged 65% year-to-date, jumping 34% within the last 24 hours alone and adding $3 billion to its valuation. Meanwhile, BONK climbed 49%, while FLOKI gained 40%, showcasing broad-based strength across major memecoin players. Trading activity intensified dramatically, with daily volumes reaching $9 billion as the market entered a pronounced short squeeze phase. This synchronized upswing reflects renewed risk appetite in the crypto ecosystem and suggests memecoin traders are capitalizing on capitulation levels from the previous downturn.